SET-listed Siam Cement Group (SCG), Thailand's largest cement maker and industrial conglomerate, has raised fresh concerns about unpleasant impacts on the local economy caused by three risk factors: high energy costs, PM2.5 ultra-fine dust and drought.
High energy costs have mainly resulted from an increase in coal and liquefied natural gas prices.
"SCG is concerned these three factors would affect businesses at at a time the domestic economy has begun to recover, driven by the improving tourism industry," said Roongrote Rangsiyopash, president and chief executive of SCG.
Expensive power bills for households and businesses are also a worry as they can affect companies' competitiveness and increase the cost of living for members of the public.
"In the short term, high energy costs will increase inflation. In the long term, businesses' competitiveness will suffer," said Mr Roongrote.
Drought, expected to result from El Nino weather patterns, would cause a scarcity of water, affecting the agricultural sector and eventually weakening purchasing power among local farmers, he said.
The PM2.5 dust could threaten the tourism industry as the pollution may decrease the number of foreign tourist arrivals, currently a key factor in terms of earning revenue for the country.
"Tourists will be afraid of the unpleasant impact on their health and may decide not to travel to Thailand, which may lead to sluggish tourism," said Mr Roongrote.
SCG expects the risk factors to affect its business, which would mean it would not be able to achieve its 2023 revenue target.
The company earlier expected its revenue to grow by 10% year-on-year from 570 billion baht last year.
SCG plans to revise its revenue target and investment budget within the second half of 2023.
According to the SCG, the Asean market needs more time to recover as high inflation and interest rates continue to affect the real estate sector in some countries while global economic prospects are not very good amid concerns that the US and Europe may enter a recession.
In the first quarter of this year, SCG posted a revenue increase of 5% quarter-on-quarter to 129 billion baht and profit of 16.5 billion baht.
